1701 Imperial Avenuelittle Italy Waterfront San Diego, CA Park 0.18 Acres

SD Int. Airport 32-72 Unit Apartment/Multi-family Site with Bay Views QUALIFIED OPPORTUNITY ZONE PROPERTY Balboa Park 1701 Imperial AvenueLittle Italy Waterfront San Diego, CA Park 0.18 Acres

Embarcadero San Diego City College Horton Plaza

Seaport Village

Gaslamp District

Convention Petco Park Center

E HARBOR DR

SITE

ERIN MCKINLEY DAVID SANTISTEVAN Land Advisor Senior Executive Vice President +1 858 677 5312 [email protected] [email protected] Lic. No. 00913491 Lic. No. 01939372 table I. Property Overview �� 03 of contents II. Fee Schedule �� 04 III. Economic Outlook �� 06

IV. Aerials �� 08

V. Elevations & Floor Plans �� 18

VI. Community Plans ��34

VII. Local Apartment Profiles �� 40

VIII. Market Overview �� 42

IX. Demographics ��46

X. Offering Guidelines ��47

| 2 | 1701 IMPERIAL AVENUE | SAN DIEGO COLLIERS INTERNATIONAL | OFFERING MEMORANDUM PROPERTY OVERVIEW

Property in the Qualified Opportunity Zone (QOZ)

This property has been identified as being in the QOZ, which allows Buyers/Investors to use capital gain monies to invest in a Qualified Opportunity Fund (QOF) which can purchase the QOZ property. If the QOF invests its capital in a QOZ property for at least 7 years, the Buyer/Investor can receive up to a 15% tax break on the initial amount invested, and the investor’s share of the capital profits in the QOF will be treated as 100% tax free! Please consult your financial specialist for details. All 8,700 QOZs in the whole country that ever will exist have been designated… this property could be your chance to get in the game.

www.cdfifund.gov/Pages/Opportunity-Zones.aspx

Location 1701 Imperial Ave., San Diego, CA Density Bonus The City of San Diego has allowances for up to 50% density bonus (for providing 15% very APNs 535-630-01-00 low income units) along with five (5) incentives, including parking reduction Municipality City of San Diego incentives. Description of Project Unentitled land with the potential for a mid- Acreage 0.18 acres (7,921 SF) rise building with bay and Coronado bridge views. Potential for 32-72 +/- units Zoning CCPD-MC (Centre City Planned District - Mixed Commercial) Project Documents SD Density Bonus SD Denisty Bonus Parking Incentives Community Plan Centre City Planned District Topography Flat disturbed site FAR Minimum FAR 2.0 / Maximum FAR 3.0 / Maximum FAR with all available bonuses 6.0 Asking Price SUBMIT ALL OFFERS Max Buildable SF 47,526 SF

District East Village (southeast quadrant)

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 3 | FEE SCHEDULE

Estimated Fee Schedule

LOCATION City of San Diego

NUMBER OF UNITS 50

ACRES 0.18 1701 Imperial Ave PRODUCT TYPE Attached

NUMBER OF BLDGS 1

PRODUCT SQ FT 1,000

Unit of Per Unit Fee Per Unit Cost Notes Unit Cost Measurement Qty Cost

SDCWA 3/4" Meter $5,240.00 $5,240.00 Meter 1 $5,240.00

School Fee (San Diego Unified) $3,200.00 $3.20 sq. ft. $3.20 Sq. Ft. 1000 $3,200.00

Inclusionary Housing Fee N/A assuming providing onsite (otherwise $7.03 SF $7.03 Sq. Ft. 1000 $7,030.00 based on a project over 10 units)

Water Fee $1,828.20 based on >70 du/acre $3,047.00 EDU 0.6 $1,828.20

Sewer Fee $2,474.40 based on >70 du/acre $4,124.00 EDU 0.6 $2,474.40

DIF Fee (Downtown) $8,161.00 multi-family $8,161.00 Unit 1 $8,161.00

RTCIP Fee (Multi-Family) $2,240.00 $2,240.00 Single Family 1 $2,240.00

Per Unit Total Cost $23,143.60

NO. DEVELOPER PROJECT NAME UNITS

1 H.G. Fenton Company Reader Building 125

2 CityMark Development Kettner Lofts / AVB 129

3 Corky McMillin Palatine Little Italy 101

4 Richman Group F11 99

5 StreetLights Residential StreetLights Makers Quarter 291

Embarcadero 6 Wood Partners The Rey 939

7 Trammell Crow Residential Alexan San Diego 313

8 Lowe Enterprises IDEA 1 282 Seaport Village

9 Richmond Group Library Tower 226

10 Willmark Communities Park and C Street 108

11 Lennar Hybrid 368

12 Greystar Ballpark Village 713

13 Alliance Residential Broadstone Makers Quarter 269

8,562 UNITS UNDER CONSTRUCTION, Entitled and Planned; 3,746 UNITS COMPLETED by December 2017.

| 6 | 1701 IMPERIAL AVENUE | SAN DIEGO COLLIERS INTERNATIONAL | OFFERING MEMORANDUM San Diego International Airport

Little Italy Balboa Park 2

1 3 Waterfront Park

San Diego 6 City College

Horton Plaza

10 4 Gaslamp 8 District 13

E HARBOR DR Convention Petco Park 9 Center 7 11 12

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 7 | AERIALS | Locator

K E E I SANSAN DIEGO N TT D TT D N I INTERNATIONAL N AI INTERNATIONAL A E E S

TT R T AIRPORT EE R S REE RT AIRPORT TR B ST E L S BO R EL E RRE O E AUU P U TE LA U L A L T LE C I EV IF F AV I IC AR C T DR SETE H TYR H D SIV W W I V Y T D Y . EE V Y W R L . SSTT B . RNN K HHOO R SAN DIEGO WT A . HA T P BAY W REETE S STTR APEE GRA ETT RREEE SSTT FIR BALBOA

N P K I C S U F

N N PARK R A O T R T N E O

. N

A D A O

L O I C H T E

I O L

T I

N T

O I V

T I

U N A N T E I A E F

T E

R N V

I N 5 R M

S S I

T S S S D

B R

T T WATERFRONT E I

R ST

T S B A T

H R G R D O

R E R T R T

R I

E N E S A BALBOA

E W B E GI R R R E 5 E 6 E 1 E 4

T B PARK T E NH O

E E S E T E I T S T T T R D Y T S

E H T E H PARK H T U T T H

E . R

R S

U T

R E E

A L A R

I A P

T L E V V E

E V

V P

E V E E

E V

E T

A E

R SAN DIEGO P

A D

A R

C D

BAY I SAN DIEGO

I SAN DIEGO C R CITY COLLEGE

1 2 2 2 2 2 H

9 1 4 CITY COLLEGE 0 2 3 W

R 1

1 1 1

S T T T N R

0 1

7 6

T T T REE H EET ST H STR B H Y B D V

T D

T T

H H

S S S

S A

T T T

V T

R A S S

R R R

R T E C STREE R T T E

EET E TR 5 E C S E E

R R E

E E E E E 1 1 1 2 2 2 2 2

T E E

6 7 9

T T 4 0 T 1 2 3 T

T E T E T S

T N R T

H H H T T T

H D D

S S BROADWAY ADWAY S S ADWAY BRO S BRO S S S

T T T T

T T T

E STREET E STREET

F STREET F STREET

G STREET G STREET

MARKET STREETMARKET STREET MARKET STREET

ISLAND AVE ISLAND AVE J SSTTRREETET SITE E HHA EET ARRB K STR BOOR PETCO R DDRR IV PARK SAN DIEGO E CONVENTION CENTER IMPERIAL AVE

COMMERCIAL STREET

SAN DIEGO BAY

Convention Center Petco Park

COMMERCIAL ST 17TH STREET IMPERIAL AVE

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 9 | AERIALS | Far

Petco Park SITE 17TH STREET

IMPERIAL AVE Convention Center PARK BLVD COMMERCIAL ST E HARBOR DR

IMPERIAL AVE 17TH STREET 17TH

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 11 | AERIALS | Proximity to Coronado Bridge

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 13 | AERIALS | View From 70 Feet

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 15 | AERIALS | View From 40 Feet

17TH STREET

IMPERIAL AVE

Imperial Avenue Plans 10-24-16 Rev 2 Imperial Avenue Plans 12-14-16

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 19 | OPTION A | Floor Plan

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 21 | OPTION B | Floor Plan

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 23 | TYPICAL UNITS

| 24 | 1701 IMPERIAL AVENUE | SAN DIEGO COLLIERS INTERNATIONAL | OFFERING MEMORANDUM TYPICAL UNITS

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 25 | AFFORDABLE MIX | Floor Plan

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 27 | PROPOSED | Mid-Rise Elevations Art Lofts

Imperial Avenue Art Lofts trestlebuild.com Preliminary Designs Provided by: malickinfill.com

Northwest View

Trestle Build | Imperial & 17th Art Lofts 3 PROPOSED | Art Lofts

Southwest View Southeast View

th Trestle Build | Imperial & 17th Art Lofts 5 Trestle Build | Imperial & 17 Art Lofts 6

North View West View

Imperial Avenue 17 th Street

Scale 1” = 20’

Trestle Build | Imperial & 17th Art Lofts 8

Levels 2-4 Project Metrics

Total Residential 44 Units Gross Area 33,000 SF

Art Lofts 38 Units Featuring:

• 16 Foot clear ceiling height • 600 SF living area

Studios 6 Units Featuring: • 12 Foot clear ceiling height • 450 SF living area

All Units • Common area roof deck access with bridge views • Warehouse windows for ample natural light • Cross ventilation

Green Building Features • Passive window shading • Bio-filtration planter area • Naturally ventilated garage • Naturally ventilated cooridors

Scale 1” = 20’

Trestle Build | Imperial & 17th Art Lofts 9

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 31 | PROPOSED | Art Lofts

Level 5 Project Metrics

Total Residential 44 Units Gross Area 33,000 SF

Art Lofts 38 Units Featuring:

• 16 Foot clear ceiling height • 600 SF living area

Studios 6 Units Featuring: • 12 Foot clear ceiling height • 450 SF living area

All Units • Common area roof deck access with bridge views • Warehouse windows for ample natural light • Cross ventilation

Green Building Features • Passive window shading • Bio-filtration planter area • Naturally ventilated garage • Naturally ventilated cooridors

Scale 1” = 20’

Trestle Build | Imperial & 17th Art Lofts 10

Roof Plan Project Metrics

Total Residential 44 Units Gross Area 33,000 SF

Art Lofts 38 Units Featuring:

• 16 Foot clear ceiling height • 600 SF living area

Studios 6 Units Featuring: • 12 Foot clear ceiling height • 450 SF living area

All Units • Common area roof deck access with bridge views • Warehouse windows for ample natural light • Cross ventilation

Green Building Features • Passive window shading • Bio-filtration planter area • Naturally ventilated garage • Naturally ventilated cooridors

Scale 1” = 20’

Trestle Build | Imperial & 17th Art Lofts 11

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 33 | COMMUNITY PLAN | FAR Available

Max FAR through Bonus Payment

Base Min & Max FAR

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 35 | COMMUNITY PLAN | FAR Available

Max FAR (w/bonuses)

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 37 | COMMUNITY PLAN | East Village Retail

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 39 | LOCAL APARTMENT PROFILES

Avg. Rent/ Vacancy No. Property Units Avg. Rent Avg. SF Neighborhood Address Sq. Ft. Rate

1 City View 122 $1,794 $2.49 721 0.00% East Village 840 17th Street

2 City Villas 40 $1,426 $2.88 496 2.50% East Village 837 16th Street

3 City Villas II 30 $1,648 $2.20 750 0.00% East Village 845 16th Street

4 Urbana 96 $2,157 $2.98 723 8.33% East Village 450 10th Street

5 Current 144 $3,081 $2.79 1,103 3.47% Cortez Hill 1551 Union Street

6 EV 208 $2,136 $2.90 736 5.29% East Village 688 13th Street

7 Form 15 242 $2,001 $2.63 760 2.48% East Village 1450 Market Street

8 Vantage Pointe 679 $2,295 $2.60 882 7.22% East Village 1281 Ninth Ave.

9 Idea 1 295 $2,460 $3.33 738 16.95% Core 899 Park Blvd.

10 Market Street Village 229 $1,966 $2.90 679 3.93% East Village 699 14th Street

11 Pinnacle on the Park 484 $2,778 $3.42 813 5.17% East Village 424 15th Street

12 Strata 163 $3,535 $2.58 1,371 5.52% East Village 969 Market Street

13 The Heritage 230 $2,231 $2.41 924 4.78% Cortez Hill 1471 8th Ave.

14 The Lofts at 707 207 $2,112 $2.94 718 2.42% East Village 707 Tenth Ave.

15 The Rey 475 $2,598 $3.78 688 12.42% East Village 801 A Street

AVERAGES 233 $2,142 $2.86

5 13

15 8

3 1 2 9 14 10 6 7

4 11 12

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 41 | MARKET OVERVIEW

Downtown San Diego, California

With an estimated population of 1,406,630 as of July 1, 2016, San Diego is the eighth-largest city in the United States and second-largest in California. The city is known for its mild year-round climate, natural deep-water harbor, extensive beaches, long association with the United States Navy, and recent emergence as a healthcare and biotechnology development center.

Located in Central San Diego, Downtown San Diego is delimited by San Diego Bay to the west and southwest, Bankers Hill, Middletown, and Balboa Park to the north, Sherman Heights and Golden Hill to the east, and Barrio Logan and Logan Heights to the southeast. San Diego International Airport is just northwest of downtown. Downtown San Diego is located on San Diego Bay. In 2010, the Centre City area itself had a population of more than 28,000. Downtown San Diego serves as the cultural and financial center and central business district of San Diego, with more than 4,000 businesses and nine districts.

For the most part, San Diego neighborhood boundaries tend to be understood by its residents based on geographical boundaries like canyons and street patterns. The city recognized the importance of its neighborhoods when it organized its 2008 General Plan around the concept of a “City of Villages”. The City of San Diego recognizes 52 individual areas as Community Planning Areas. Within a given planning area there may be several distinct neighborhoods. Altogether the city contains more than 100 identified neighborhoods. San Diego Convention Center San Diego Tourism Attractions >> 766,848 visitors at 148 events at >> 32.3 million visited San Diego and >> Historic Gaslamp Quarter the Convention Center spent over $7.98 billion >> Westfield Horton Plaza Regional Mall >> $562 million direct spending & $78 million >> 10 million visited the Gaslamp Quarter >> Balboa Theatre attendee spending at restaurants/bars >> 4 million visited Seaport Village >> House of Blues >> $1.3 billion economic impact >> 4.4 million visited Sea World >> Federal Courthouses >> Currently operates at maximum capacity; >> 5 million visited the San Diego Zoo expansion complete in 2017 >> Horton Grand Theater >> 2.2 million attendees at PETCO Park >> San Diego’s highest volume restaurants are >> San Diego Civic Center in downtown and on the waterfront >> 1.05 million visited the USS Midway Museum >> Spreckels Theatre >> 2017 San Diego Convention Center & Visitor’s >> 600,000 Ferry passengers across Bureau forecast is 32.8 million visitors; $8.3 billion the bay to Coronado visitor spending; $1.9 billion food and beverage >> 192,165 cruise passengers annually spending; $1.1 billion shopping spending. >> $90 million economic impact from home-ported ships

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 43 | DOWNTOWN

Daytime Population

64,718

Businesses 3,723

Total Office SF 10,997,805

Residential Population 37,095

Visitors to San Diego 32,300,000

Hotels 16,962

| 44 | 1701 IMPERIAL AVENUE | SAN DIEGO COLLIERS INTERNATIONAL | OFFERING MEMORANDUM of Interstate 5, north of California State Route 54 and SOUTHEAST, SAN DIEGO sharing its borders with surrounding cities of San Diego County National City to the south, Lemon Grove to the 1701 Imperial Ave is located in Southeast San Diego, northeast, and Spring Valley to the east. which refers generally to the southeastern-most portion of the City of San Diego, and refers to those Households & Families neighborhoods south of State Route 94 (Martin Luther Southeast San Diego is widely viewed as one of the King Jr. Freeway) and east of Downtown San Diego. most diverse areas in the city, inhabited most visibly There are three official community planning areas: by Latinos, African-Americans, and Filipinos. Estimates Skyline-Paradise Hills, Encanto Neighborhoods, and based on the neighborhoods spanning the 92102, 92113, Southeastern. 92114, and 92139 ZIP codes of Southeast San Diego put the population at roughly 195,000 people over an Area Overview area of 21.2 square miles (55 km2), placing the area’s Largely urbanized in the areas nearer Downtown population density at 9,285.7/sq mi (3,565.5/km²). San Diego to the west[1] and characteristically hilly, with lower-density residential and semi-rural neighborhoods toward the east, it is economically and ethnically diverse.

Location & Freeway Access Historically, Southeast San Diego had been represented as the communities directly east of the downtown area which lies south of State Route 94 Martin Luther King Jr. Freeway, west of California State Route 125, east

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 45 | DEMOGRAPHICS 2017 POPULATION TREND Household Income

2000 Total Population 20,622 Per Capity Income $58,463 2010 Total Population 34,500 Household Income: Median $59,626 2017 Total Population 37,778 Household Income: Average $90,957 2022 Total Population 41,866 2000 to 2010 Population Change 67.3% up to $24,999 4.3% 2000 to 2017 Population Change 83.2% $25,000 to $29,999 3.1% 2010 to 2022 Population Change 21.4% $30,000 to $34,999 3.9% 2017 to 2022 Population Change 10.8% $35,000 to $39,999 2.4% $40,000 to $44,999 3.4% $45,000 to $49,999 2.5% HOUSEHOLD TREND $50,000 to $59,999 6.9% $60,000 to $74,999 8.2% $75,000 to $99,999 11.2% 2000 Total Households 10,728 $100,000 to $124,999 8.5% 2010 Total Households 19,154 2017 Total Households 20,671 $125,000 to $149,999 6.3% 2022 Total Households 23,005 $150,000 to $199,999 7.0% 2000 to 2010 Household Change 78.5% $200,000 or more 8.4% 2000 to 2017 Household Change 92.7% 2010 to 2022 Household Change 20.1% 2017 to 2022 Household Change 11.3% TOTAL DAYTIME POPULATION

Total Daytime Population 114,321 2017 Household Size Total Employee Population 95,915 Total Daytime at Home Population 18,406 Average Household Size 1.6 Total Employee Population 83.9% (% of Daytime) Total Daytime at Home Population 16.1% (% of Daytime Population

| 46 | 1701 IMPERIAL AVENUE | SAN DIEGO COLLIERS INTERNATIONAL | OFFERING MEMORANDUM OFFERING GUIDELINES

OFFERS DUE DILIGENCE SUBMIT ALL OFFERS Buyer shall have a due diligence period that begins from the Effective Date of the Purchase Agreement to perform whatever studies it may desire on the Property, including, but not limited to, market studies, engineering and environmental reviews, feasibility in light of entitlements, verification of DEPOSIT government approvals, CFD obligations, tax rates, HOA budgets, clear title, etc. Seller will deliver to An initial deposit shall be placed into escrow at the execution of Buyer all studies, plans, and reports in its possession. Purchase Agreement and shall be refundable during the Due Diligence Period. Upon Buyer’s election to proceed with acquisition of the Property at the end of the Due Diligence Period the entire deposit shall be non-refundable except in the case of a default or breach by CLOSING Seller prior to closing. The balance of the purchase price shall be paid Seller will entertain offers based on “As-Is” purchases and closing upon Tentative Parcel Map approval. at Closing.

DISCLAIMER This document has been prepared by Colliers International for advertising and general information OFFERS DUE only. Neither Colliers International nor the Seller makes any guarantees, representations or All offers shall be submitted to: warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own Erin McKinley inquiries as to the accuracy of the information. Colliers International excludes unequivocally all c/o Colliers International inferred or implied terms, conditions and warranties arising out of this document and excludes all 4350 La Jolla Village Drive, Suite 500 liability for loss and damages arising there from. Colliers International is a worldwide affiliation of San Diego, CA 92122 independently owned and operated companies. Email: [email protected]

BROKERAGE A commission to Colliers International will be paid by Owner pursuant to a separate listing agreement. A co-op commission is offered at two percent (2%) of the purchase price. All communications and inquiries regarding the Property should be directed to Erin McKinley.

COLLIERS INTERNATIONAL | OFFERING MEMORANDUM 1701 IMPERIAL AVE | 47 | SITE

Petco Park

Convention Center

E HARBOR DR

ERIN MCKINLEY DAVID SANTISTEVAN COLLIERS INTERNATIONAL Land Advisor Senior Executive Vice President 4350 La Jolla Village Drive, Suite 500 Contact +1 858 677 5312 [email protected] San Diego, CA 92122 [email protected] Lic. No. 00913491 +1 858 455 1515 main Lic. No. 01939372 colliers.com/sandiego